Manufacturing activity in the Federal Reserve Bank of Kansas City's region "expanded slightly" in November, according to the bank's monthly manufacturing survey, released Friday.
"Factory activity in our region rose for the third straight month in November, following a year and a half of near constant declines," said Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas City. "Firms also remained optimistic about future activity."
The composite index declined to 1 in November from 6 in October, while the production index fell to 9 from 18, volume of shipments dropped to 7 from 20, the volume of new orders index slumped to 6 from 14, and the backlog of orders index reversed to negative 2 from positive 4. The new orders for exports index slid to zero from 3 and the supplier delivery time index decreased to zero from 3.
The number of employees index dropped to 1 from 7, while the average employee workweek index reversed to negative 8 from positive 8. The prices received for finished product index narrowed to negative 2 from negative 5, while the prices paid for raw materials index soared to 16 from zero.
As for the inventories indexes, materials remained negative 11, while the finished goods dropped to negative 13 from negative 9.
In projections for six months from now, the composite index slid to 12 from 18, and the production index declined to 24 from 32. The shipments index decreased to 23 from 32, while new orders grew to 27 from 16, and the backlog of orders index bounced to 10 from 5. The new orders for exports index gained to 6 from 1, and the supplier delivery time index fell to 4 from 8.
The number of employees index was at 5, down from 21, while the average employee workweek index increased to 6 from 4. The prices received for finished product index climbed to 11 from 8, and the prices paid for raw materials rose to 25 from 19. The capital expenditures index was at 19, after an 8 reading the prior month.
As for the inventories indexes, materials slid to 2 from 13, while the finished goods index dropped to negative 3 from positive 7.
The Tenth Federal Reserve District includes Kansas, Colorado, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri.
